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S&P revises rating outlook to Stable from Positie

On Friday, S&P revised Ineos’ rating outlook to Stable from Positive due to expectations of a weak operating performance driven by the deteriorating economic outlook in Europe and resultant pressure on cracker margins. The agency highlights the increased risk of a covenant breach in 2012, but expects banks to step in to provide the required headroom as they have done in the past.

Although S&P sees some refinancing risk for the 2013 debt maturities, the agency expects this to be mitigated by a reduced interest burden and lower capital spend following the refinery asset disposals and debt repayment.